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Paying Off Mortgage in 15 Years With a 30 Year Mortgage

After looking at the difference between a 30-year, and a15-year mortgage, I decided I'd like to pay my home off over the next 15 years. I can afford the payment for the 15 yr fixed, but I'm not sure I want to bind myself to that payment. Can I get the 30-year mortgage and pay extra each month (up to the amount of the 15-year payment) and effectively create a 15-year mortgage? by PeggyJones305 from Alleghany, California. Feb 17th 2017 Reply


Shane Milne (ShanetheMortgageMan)
#828 ranked lender in California - 4 contributions

Hi Peggy, yes you can absolutely do that. It's also a very safe way to proceed, especially if you are self-employed and have up/down months, or could potentially run into expenses (medical, etc.) that would allow you to make a lower payment from time to time in order to afford life's curveballs.

Feb 17th 2017
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Elva Wormley (ElvaWormley)
#787 ranked lender in California - 26 contributions

Hi Peggy, that is a good plan especially if you are concerned about the possibility of not being able to make the 15 year payment at some point.

Feb 17th 2017
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Dominic Walker (Dominc)
#417 ranked lender in California - 2 contributions

Peggy it is certainly possible. The down side is that the interest rate is slightly higher. However the upside is that it gives you the flexibility to make the payment of either 15 or 30 year loan. You may want to use the money as an investment vehicle to make more money rather than just lowering the principle owed. However then you run the risk of not having the discipline to not spend the saving. It also gives you a cushion for any of life's curve balls.

Feb 17th 2017
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Michael Diaz (sincityloandr)
#59 ranked lender in Nevada - 25 contributions

I always suggest this to my clients. In case something happens and you cant make that 15 year payment you have the 30 year payment. Another plus is the actual effective interest rate that you will pay is less then the 15 year payment. If you contact me I can send you a personalized report to show you. Just let me know.

Feb 19th 2017
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Sara Deere (Saraloveshomeloans)
#1 ranked lender in Kansas - 511 contributions

One extra payment to the principal on a 30 year mortgage saves one over 5 years of interest.

Feb 20th 2017
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Larry Gray (lgray_312_247)
#565 ranked lender in California - 1,127 contributions

I concur with the answers that agree with it being a good idea. It is better to choose to pay whatever additional money you need to towards principal whenever you can then be stuck with a higher payment should anticipate getting into reduced earnings within a 15 year period.

Feb 20th 2017
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William J Acres (William_Acres)
#1 ranked lender in Arizona - 8,008 contributions

The short answer is yes.. you can make additional payments that go towards your principal.. and if you calculate your remaining balance for 15 years, and make that payment, that would give you the schedule you would need to adhere to in order to pay it off in 15 years.. I'm a preferred Lender with Arizona and California being my primary markets. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. 480-287-5714 WilliamAcres.com NMLS# 226347 / RPM Mortgage NMLS 1541014 / AZMB0121893

Feb 22nd 2017
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